The attractiveness of the dollar continues to rise

Euro is neutral on Tuesday, September 16 at 9:00 MSK and consolidated at the level of $ 1,294. USA. “The euro has stopped last week, but now sellers are turning their attention to the Australian dollar and the yen – noted strategist and director of exchange-traded products brokerage Saxo Bank Ole Slot Hansen. – Dollar feels extremely good, which is not true of other currencies.

Lull in sales euro is unlikely to last long. Recall, the European Central Bank decided to reduce the interest rate to 0.05%, and the reduction of deposit rates to negative values ​​(-0.2%). This solution is aimed primarily at supporting the European economy, as well as due to the necessity to revive inflation in the EU, as recent macroeconomic data on the EU economy signaled a gradual rolling the European economy into deflation. Moreover, the ECB plans to use non-standard measures to stimulate the economy of the EU, some of which are similar to the methods of quantitative easing, the Federal Reserve used the United States.

“It should be noted that these measures will help banks clear their balance sheets overloaded overdue consumer and mortgage loans, and will also enable commercial banks to lend more active economic entities of the EU. However, this will lead to an increase in the ECB’s balance sheet, that currently causes resistance in key EU countries . The full-scale launch of quantitative easing from the ECB may lead to a gradual weakening of the euro against the dollar, because the United States currently are in the process end of quantitative easing in the beginning of the cycle of rate hikes, “- said a senior portfolio manager of the Criminal Code” Kapital “Vadim Bit -Avragim .

“Thus, on the background rate reduction and the probable launch of quantitative easing from the ECB, as well as the continuing geopolitical risks for investors look more interesting assets in dollars – notes V.Bit-Avragim.- Attraction and adds the factor that the Federal Reserve, likely to start raising rates in the I quarter of next year, which will cause even more powerful inflow of dollar assets on a recovery in the American economy. “